Agent commission in NSW is fully negotiable and varies widely depending on the area, the property and the agent's service model.
This guide explains the main structures, what to ask for in writing, and how to compare proposals like-for-like.
How commission is structured
Commission is usually charged as a percentage of the sale price. Some agents offer flat-fee or tiered (incentive-based) structures where the percentage increases above a target price.
Tiered structures are designed to align the agent's incentive with achieving a higher sale price. Make sure the trigger price and the bonus percentage are clearly defined in writing.
What's negotiable
Commission rate, GST inclusion, marketing contribution, tier triggers and the length of the agency agreement are all negotiable. Don't assume the first proposal is the final offer.
Ask each agent to put their fee structure in writing so you can compare proposals side by side.
Reading the agency agreement
In NSW you must sign a written agency agreement before an agent can market your home. Read it carefully, pay particular attention to the agreement term, exclusivity clause, marketing schedule and any cooling-off period.
If anything is unclear, ask your conveyancer or solicitor to review it before you sign.
General information only. This guide is not tax, legal or financial advice. Speak with a licensed accountant, conveyancer or solicitor about your specific situation.
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